Want to Trade Forex

Discussion in 'Forex' started by KiasuTrader, Jan 31, 2004.

  1. I am currently daytrading the S&P minis and am successful with that, but would like to start swing trading Forex. I've heard that they follow technicals like Support and Resistance very well.

    I currently use Fibs for S&P and will do the same with Forex. I was just wondering-

    1. Can anybody recommend any good books on the topic of trading Forex for a newcomer?

    2. Can anyone suggest what a good currency to start off with would be or are they all pretty much the same?

    3. What are some of the more reliable indicators people look at when trading forex? Ie government reports, particular stocks or rates, etc..

    Thanks in advance

  2. Kiasu: Just on my way out for a walk, but maybe I can suggest a couple (very) general things that have helped me.

    If you want to trade FX spot/cash then you can go to amazon.com and punch up forex, currency, etc. but buy the books from walmart as you will save money.

    most books I bought I returned. though I have about 2500 pages on my favorate's list of "must read" (educational) sites on the net.

    (some) indicators for FX are employment reports, interest rate, how a country's GNP is doing, their debt, stuff like that.

    for example, with stocks you trade companies. with FX you trade countries.

    applying good trading rules and having basic money/trade/risk/profit/loss management skills will easily cross over to trading currencies.

    try gft forex for their demo and OANDA for live trading since you can trade live there yet use as little as 1 unit to trade with.

    currencies: the cross pairs and exotics may be better to trade because you can possibly see what new announcements have upon them more readily (more exagerated price moves) - but EUR/USD is the most highly traded so is desired by some for scalping.


  3. cosmic



    does anyone know which Forex broker does support third party applications beeing feeded with their feed?

    I am primarily using TS2000i & some addons so it would be a need for me to integrate their data into my systems before putting money on the line...:)

    Maybe one can also get DDE access for feeding other programs?

  4. The Euro/USD pair is the most liquid, and trends very well, as do many other currency pairs. I'd strart there.

    Fibs, etc work well with forex, but I've found simple trendline channels are the best, especially with a 60 min timeframe. Its amazing how well this works if you have the patience to wait for the low number of trades that pop up trading this way.

  5. I think the recent FX volatility if prob killing the accts of the newbies

    who do not have the strictest discipline and capital reserve

    to cover drawdowns

    the top banks dealing and the top FX firms must be making a killing though on all the new fish in the fx sea
  6. Cosmic: I may not understand what you are asking here but GAIN Capital uses both e-Signal and Aspen Graphics.

    Hope this helps.


  7. SethArb: You're right, SethArb! Lately the EUR/USD has been really volatile!

    I HAPPENED to be in the right direction (short) at the same time the EUR/USD fell 170 points in 5 minutes.

    Can you believe I STILL lost $20,000 and counting?

    Good thing it was a demo! lol

  8. I wouldn't say that the volatility is killing the newbies. I had my best month so far after 6 months of live trading.
  9. just21


  10. :D
    #10     Jan 31, 2004